Head to Head Analysis: Equity One (EQY) versus First Potomac Realty Trust (FPO)
First Potomac Realty Trust (NYSE: FPO) and Equity One (NYSE:EQY) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
93.2% of First Potomac Realty Trust shares are owned by institutional investors. Comparatively, 64.0% of Equity One shares are owned by institutional investors. 2.1% of First Potomac Realty Trust shares are owned by insiders. Comparatively, 35.9% of Equity One shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares First Potomac Realty Trust and Equity One’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|First Potomac Realty Trust||$154.33 million||4.23||$83.35 million||$0.69||16.10|
First Potomac Realty Trust has higher revenue and earnings than Equity One. First Potomac Realty Trust is trading at a lower price-to-earnings ratio than Equity One, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for First Potomac Realty Trust and Equity One, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Potomac Realty Trust||2||2||1||0||1.80|
First Potomac Realty Trust presently has a consensus price target of $11.03, suggesting a potential downside of 0.72%. Given First Potomac Realty Trust’s higher probable upside, research analysts clearly believe First Potomac Realty Trust is more favorable than Equity One.
First Potomac Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.6%. Equity One pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. First Potomac Realty Trust pays out 58.0% of its earnings in the form of a dividend. Equity One pays out 179.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Potomac Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares First Potomac Realty Trust and Equity One’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Potomac Realty Trust||26.86%||8.96%||3.32%|
Risk and Volatility
First Potomac Realty Trust has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Equity One has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.
First Potomac Realty Trust beats Equity One on 11 of the 13 factors compared between the two stocks.
First Potomac Realty Trust Company Profile
First Potomac Realty Trust (First Potomac) is engaged in ownership, management, redevelopment and development of office and business park properties in the greater Washington, D.C. region. The Company’s segments include Washington, D.C., Maryland, Northern Virginia and Southern Virginia. The Company conducts its business through First Potomac Realty Investment Limited Partnership, its operating partnership. The Company’s portfolio consist a mix of single-tenant and multi-tenant office properties, and business parks. The office properties are single-story and multi-story buildings that are primarily for office uses, and business parks consists of buildings with office features combined with some industrial property space. As of December 31, 2016, the Company owned properties totaling 6.7 million square feet and had a non-controlling ownership interest in properties totaling an additional 0.9 million square feet through five unconsolidated joint ventures.
Equity One Company Profile
Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.
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